South Africans could be paying more than R20 a litre.

0
65

South Africans could be paying more than R20 a litre. However, oil should hopefully not rise above $80. Mostly the expectation is that oil is currently at a reasonably high point.

However, economists believe the oil price is unlikely to rise much above $80 a barrel in 2019, and that the fuel price will retreat towards the end of the year. In fact, global estimates indicate an average Brent crude oil price in the mid-$60s for the year.

The price of petrol in South Africa increased last week by 54c per litre while diesel went up by one cent as the oil price neared $75 per barrel as it continued to rise since starting the year at just over $50/barrel.

R20 a litre for petrol is possible before the end of the year
Marcia Klein, Moneyweb
However, downward drift is expected in November and December, possibly sooner.

The spike in the fuel price on Wednesday and growing unrest in oil-producing Venezuela have done little to assuage fears that the petrol price is set to continue its upward trajectory for most of this year.

However, economists believe the oil price is unlikely to rise much above $80 a barrel in 2019, and that the fuel price will retreat towards the end of the year. In fact, global estimates indicate an average Brent crude oil price in the mid-$60s for the year.

The price of petrol in South Africa increased last week by 54c per litre while diesel went up by one cent as the oil price neared $75 per barrel as it continued to rise since starting the year at just over $50/barrel.

The inland price of 95 unleaded petrol increased to R16.67 and 93 unleaded to R16.50, while, at the coast, 95 unleaded increased to R16.03 and 93 unleaded to R16.07. The prices continue to edge closer to the October 2018 all-time high of R17.08.


The recent increase was effected as the rand averaged R14.14 to the US dollar in April compared to R14.38 in the previous month, according to Central Energy Fund calculations, leading to a lower contribution to the fuel price. The higher oil price reflects restricted Organisation of Petroleum Exporting Countries (Opec) output, US sanctions on Iran and Venezuela, and unrest in Libya.

Source: https://citizen.co.za/business/2126731/r20-a-litre-for-petrol-is-possible-before-the-end-of-the-year/